Something About the Economy...

Must be a Monday morning. Although the day has been going since 6:30am, it still feels like a running combination of molasses and honey over ice ... Slow …

Several issues have come up in the last couple of days. I am not sure they really deserve of my time or yours, but it seems the same ones come up and again. My daughter (not a related issue to those), along with a group of friends from the states just spent some time in Barcelona, Spain. This was billed as an organized tour and, according to her notes, it was a successful tour. She enjoyed it very much and I was glad she did; after all, we have family roots in Spain … although not in Barcelona.

These familial roots are (were) planted in the Seville and the Asturias regions. Very different and far apart; physically as well as culturally. Seville and the well known southern cities are the fruit of the Arab invasion and occupation of the Iberian Peninsula for over seven centuries; the Asturias Principality was the last northern stronghold of the Spaniards and the heart of the rebellious area from where came the forces that eventually expelled the Arabs.

A friend lives in Barcelona and she just told me that they are planning to move to Gijona (The best nougats candy in the world!!), Asturias sometime next year. It seems that retirement is looming near and the cost of living in Gijona is lower than in Barcelona. I do not know Gijona, but can attest to the fact that Barcelona is indeed expensive. Apparently, the difference is well worth the price, time and effort the move will require. I guess that our generation, as it nears the time of retirement and regardless of where its members may live, is undertaking a real scrutiny of what it considers necessary to live.

The biggest issue at retirement may no longer be whether we have enough of an income to survive but, what happens if we do indeed survive for too many years (economically speaking, that is…) and we run out of funds. Being in the business of life insurance, we do a bit of related work and find this to be an increasing worry. Especially in the heels of so many market downturns, where accumulated funds and values have fallen to very low levels. The biggest (in the US) chunk of market money seems to be invested on behalf of a variety of retirement plans, and the recent semi-collapses within these markets is a concern. Many companies and, therefore people who were(are) employed by them, have seen these funds shrink by as much as 75% or more.

 Actually, this was not the intended topic for today. Looking at retirement planning in any coherent manner would require more than one entry and a bit of preparation; unfortunately it has really become a major issue not only in our society, but in most societies of the developed world. The average social security or its equivalent in most economies is very weighed down with existing financial problems and here, in the US, this year will see the start of the most massive generational increase in the ranks of retired folks, with the arrival of the so called “baby boom generation”; this is coming of age starting now, and may well triple the existing retirement ranks over the next 5-8 years.

We live in a world where incomes go down and prices go up. Something’s gotta give!! Whatever little trinkets we used to buy that for one or two dollars, now can easily cost four or five dollars. Then there are the MegaMarts, where pretty much everything sold is made overseas. More often than not by people who work 12-14 hours a day and make 80 cents to $1.50 an hour; and they are thankful for these wages. They are taking home twice what their earnings were before. Many folks complain that “all the manufacturing jobs have been taken out of the country” … there is a reason for this.

Are we willing to pay an extra 10-20% in order to purchase items made in the USA?  Before you say “Yeah … Sure!” think about the fact YOU have been buying at the MegaMart(s) because it is cheaper and “saves you money”. Did you ever read the markers on the items bought? … Of course not!! Just the price sticker ... As the old saying goes: “you cannot have your cake and eat it too…” Either you have it, or you eat it. The folks who scream the most about the job losses, are usually the very folks who buy these “made in China/India/Malasya/Burma” goodies. The concept is akin to the person who, while driving a foreign made car, proudly splats on the bumper the ubiquitous “Buy American” sticker. Life is truly a constant flow of black humor. Usually, and in an  ironically innocent manner, directed at ourselves.

The reality of these issues is that in order to truly make a dent on the current situation, we all have to tighten an already bursting belt a bit more. We are still the largest consumer market in the world, despite our individual economic losses. The larger (population wise) countries like China and India are still far behind us in a per capita income basis; this is what actually determines the buying power of the market. They manufacture at dirt cheap prices because we buy the goods. Did you know that if each one of us were willing to spend an additional 4-6 dollars per month by buying goods made in the US, our economy would gain several thousand jobs in one year?

In a world of balances, we can’t say we will “only buy American”, for in our present day “global economy” I think this probable intent is farfetched. There are goods which are simply not going to be manufactured here again. The reason? When the prices went up and the factories moved overseas in search of cheaper labor, the actual physical plants fell into such disrepair that would be economically unfeasible to fix up. But these goods, important as they may be, represent a relatively small % of the overall day to day consumer goods purchased. Think about it … Are you willing to spend a bit more from your budget to insure that more jobs are available to you and your children? … I am … There are several places on the net where you can verify which stores have a balanced inventory which includes a fair number of goods manufactured in the US that you can choose to take home with you. Go and make your purchases there and show your support.

“It’s The Economy, Fool…” was the election war cry of a not too long ago President. It is still and we are the fools who continue to send our money overseas every time we buy something not made here. Think about it next time you go to the market… Is the economy we complain so much about worth an extra 4 - 6 dollars a month?

Be Well … Be Back!!!

Final Notes:

• Pray for those who are fighting an illness which may take them away from their loved ones… Every request is heard, and counts!!
• Follow us on Twitter … @RJAsPandora
• Any comments please send to otherboxp@yahoo.com
• Remember:  We are “On Air” every Sunday night at 6:30pm EST (GT –5hrs).  http://www.blogtalkradio.com/theotherbox If the link does not work, please just copy and paste to your address bar.